AUD/USD drops to 0.7600 neighborhood amid resurgent USD demand

The AUD/USD pair faded RBA-led bullish spike and tumbled to three-day lows near 0.7600 handle amid resurgent greenback demand.

Currently trading around 0.7620 region, off session lows, rebounding US Treasury bond yields provided an additional boost to the US Dollar's ongoing recovery move and driving flows away from higher-yielding currencies - like the Aussie. Adding to this, downbeat sentiment around commodity space, especially copper, is also weighing on commodity-linked currencies, including the Australian Dollar.

Moreover, markets also seems to have digested today's RBA status quo monetary policy stance and upbeat outlook on the global economy, and commodity prices, while US Dollar price dynamics taking the front seat and become an exclusive driver of the pair's reversal move from session peak.

From technical perspective, the pair repeated failed to extend its recent upward trajectory and conquer 0.7700 handle, which eventually prompted traders to take some profit off the table following the pair's recent up-surge to nearly three-month tops. 

Technical levels to watch

A follow through retracement below 0.7600 handle is likely to accelerate the slide towards 0.7580-75 horizontal support ahead of 0.7555-50 support area. On the flip side, 0.7655 level now becomes immediate resistance above which the pair is likely to make a fresh attempt towards clearing 0.7700 strong hurdle and head towards Nov. 2016 daily closing highs resistance near 0.7745-50 region.